India monthly review: India on the road to reconciliation with Pakistan

In India, life seems to move as slowly as the waters of the Ganges. This is just an illusion. In May 2008 alone, India simultaneously launched ten satellites and carried out a nuclear test with its Agni III missile. India ignored a United States request that it pressure Iran to stop its nuclear program and, at the same time, move ahead with the Pakistan peace process. At least 140 people were killed in bombings and clashes in India-Pakistan violence during May. Furthermore, India ran some significant domestic political ads and announced educational benefits for lower castes and increased human rights for prostitutes.

Indian government has had to act like fast to cover all the issues on so many fronts. On April 23, it advised the United States that neither India nor Iran need external guidance when it comes to bilateral relations with one another. India has always advocated its autonomy from great power influence, especially when it comes to the United States.

On April 30, India launched ten satellites into space. On May 7 it conducted an Agni III missile test. The Agni III can carry nuclear warheads and has a range of 3,000 kilometers, which is within reach of China.  This test follows a successful firing in 2007 and a failed effort in 2006. India has not revealed whether the May 7 test firing failed or not.

India also had a tough political dilemma which involved the question of whether or not to move ahead with Pakistan peace negotiations given the recent terrorist attacks. The acts may have been designed to heighten the tensions between Hindu and Islamic people. The Muslim community in the area has been characterized by peaceful coexistence.  The peace process between India and Pakistan between the foreign ministries of each country had been on hold since last year due to political instability in Pakistan.

Talks were scheduled to resume May 20. However, both sides feared they would not be held due to Indian Army allegations that the Pakistanis had broken the ceasefire along the Line of Control (LoC) that divides the Kashmir region. The violence had resulted in the death of an Indian soldier. The Pakistani side flatly denied being responsible for the incident, and the Indian government was left with no option but to let the issue lie.

Another situation that, at first glance, seemed to threaten peace talks was the Jaipur attack, where 200 victims were wounded and 80 died. During past attacks, the Indian government accused its neighbour and the Islamic separatist cells inside Pakistan. This time, however, the Indian government was very cautious in dealing with the issue of naming possible suspects.

Thus, the meeting between foreign ministries was held successfully in Islamabad on May 20, with the new government of Pakistan.

Inside India

In addition to the violence related to India-Pakistan peace negotiations, there were also episodes of internal violence in Assam. Nine railway construction workers were murdered by members of a Dimasa separatist movement on May 12. This was followed by the death of 12 separatist rebels in the state of Nagaland on May 16, in the region bordering Assam in northwest India. The deaths occurred during a clash between two factions.

During West Bengal municipal elections, there were many reports of violence perpetuated by supporters of several, different political parties. 37 are already dead and the violence caused terror in every one of West Bengal’s 79 districts. Most of those killed were civilians attacked during the elections.

Fortunately, many social changes are occurring despite the reported violence. Different sectors are seeking, and gaining, political legitimacy. Women sex workers in the city of Calcutta are now covered by life insurance issued by the State, even though prostitution is illegal.

In education, India’s Supreme Court approved a government plan which will reserve 50% of all available seats in the nation’s best schools for children belonging to lower castes. This is the same stance taken by President Michelle Bachelet in her May 21 announcement, when she proposed increasing school subsidies for underprivileged boys and girls.

In the economic sphere, one of the major problems of the country at the moment is inflation. Because the prices of food and energy rose, the Producer Price Index (PPI) rose 7.83% percent during the last 12 months for a three-year high.

In May, the Indian Central Bank raised its key interest rate by ¼ point to 8.25%. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) proposed the Government depreciate the rupee. ASSOCHAM seeks to encourage imports and restrict exports.

But inflation is a problem in India that directly affects the poorest sectors that already face serious nutritional problems. Inflation causes millions of people living under the poverty line ($.33 a day), to buy food at prices that are twice the normal price.